Michael Pennington · August 27, 2026

How much equity are you building?

Mortgage Market Update

My Mortgage Company

Michael Pennington

Thursday, August 27, 2026

How much equity are you building?

Here's something I see homeowners overlook: the real power of building equity in their home. This week, I want to share why it matters and how it works.

National Mortgage Rates · August 20, 2026

30-Year Fixed

6.65%

FHA 30-Year

6.53%

VA 30-Year

6.32%

Rate trend

Source: Freddie Mac PMMS & Optimal Blue via FRED

Rates shown are national averages and are provided for informational purposes only. Actual rates vary based on credit profile, loan amount, and market conditions. Please contact us for a personalized rate quote.


Equity Building

Your home is working for you—here's how

Every mortgage payment you make builds equity in your home. That's money that stays with you, not your lender. Over time, as you pay down your loan balance and your home holds or gains value, that equity grows—and it becomes a real financial asset you can tap into if you need it.

Understanding your equity matters because it opens doors. A strong equity position can qualify you for favorable loan terms, help you refinance when rates move in your favor, or give you options if your financial situation changes. I often see homeowners surprised at how much equity they've built after just a few years of payments. If you're curious about where you stand, I'd love to walk you through your numbers.

Let's talk about your equity and what it means for your financial future.

Tip of the Week

Your mortgage interest may be tax-deductible if you itemize. Check with your tax professional to see if it benefits you.

Tips for Homeowners

Understanding Mortgage Points

1.

One mortgage point equals 1% of your loan amount. Paying points ("buying down the rate") reduces your interest rate — typically 0.25% per point, though this varies by lender and market.

2.

Calculate your break-even: divide the cost of the points by your monthly savings. If it takes 4 years to break even and you plan to stay 10 years, buying points makes sense.

3.

Points paid on a home purchase are generally tax-deductible in the year paid (if you itemize). Points on a refinance must be deducted over the life of the loan.

Have questions about how any of this affects your mortgage or home purchase? We're here to help — reach out to the My Mortgage Company team any time and we'll walk you through your options.

Your Mortgage Advisor

M

My Mortgage Company

Michael Pennington

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